Ag Groups Fear Steel Tariffs

Farm groups are cautioning the Trump administration not to open a "Pandora's Box" by claiming restrictions on steel and aluminum are needed to protect "national security."  Eighteen agricultural groups wrote to Secretary of Commerce Wilbur Ross on Tuesday, stressing that such a move would be a disaster for global trade, "and for U.S. agriculture in particular."The Trump administration is expected to decide any day whether to place tariffs on steel imports, stemming from an April investigation announced by the Commerce Department over whether those imports are harming U.S. national security. It's a rare argument for a major global power to make in a trade case.The farm groups wrote to Ross that it would be "a short-sighted mistake" to restrict imports based on national security claims. The farm groups called on Ross to consider the broader implications for the economy "and avoid igniting a trade war through new restrictions on steel or aluminum trade ..."Nick Giordano, vice president and council for global government affairs at the National Pork Producers Council, said farm groups recognize there is an overcapacity of steel and aluminum in the world. Farm groups and other industries are concerned, however, that the Trump administration's plan would boomerang against other exporting industries. Giordano also pointed out that roughly 25% of pork is exported, and in the case of a crop such as wheat, as much as 50% is exported.